The emerging DeFi wave and Gaming insurgence into the blockchain space has resulted in a fourth blockchain Dilemma, namely high fees created as a result of scalability issues. Previously, only, scalability, security, and decentralization, known as the blockchain trilemma (BT) hindered institutional level mass adoption. The components of the BT have been largely resolved due to the emergence of other solutions such as Matic Network and Algorand. Although the Ethereum Blockchain continues to be the most widely used, most trusted and most newly adopted blockchain fees are increasingly becoming an issue. Although, Matic Network fees are extremely low the process integrating and deploying existing DApps is in some instances is simple and in others more complicated.
When considering why certain successful DeFi projects running on Ethereum do not integrate with Matic to save $millions in fees the response was, “For Defi when it uses other protocols as a part of Money Legos. Therefore Matic has to bootstrap the entire Money legos ecosystem (Sandeep Nailwal, Matic COO).
Therefore the process for DeFi DApps that are up and running (fully developed) to migrate is possible, but also complicated and would need to be done with care. With billions currently tied up in the existing DeFi DApps, this would carry some risk. Money legos in DeFi allow DApps to work together with their integrated protocols with the common base layer of the blockchain.
Thus, new DApps can easily build on Matic but for existing DApps to integrate and take advantage of Matic’s low fees requires another solution.
One such solution is offered by Biconomy. In considering Biconomy the following points will be elaborated Meta-transactions and no transaction fees for users, projects integration in three easy steps, easy user onboarding, Biconomy dashboard and additional features.
What are meta-transactions? According to Biconomy (2020), meta-transactions enable to user to do transactions on the blockchain with a zero balance account – because the fees are paid by the DApp developer/owner as a part of the user acquisition cost. The question then arises – will mean the developer will have to pay huge amounts of fees on behalf of the users. This assumption would be inaccurate because Matic fees are at least 100 X less than Ethereum fees at present and in reality usually even more due to fluctuation in gas fees throughout the day. For example, Telegram user Coodz Mac made the following statement: On 0xUniverse, to transfer a planet on Matic universe cost 0.02 Matic ($0.0004052) to ETH Universe which is currently 0.010006 ETH ($3-85) to transfer a planet! congratulations Matic you've revived a game that was sent to the Ethereum transactions slaughterhouse.
$3-85 divided by $0.0004052 = 9501 X cheaper. Thus for DApp owners to pay the fees for DeFi protocols or Blockchain games is inexpensive due to low transactions fees on the Matic Network
Additionally, gas fees can be paid in other stable coins and even other tokens by DApp developers.
2.Easy User On-Boarding (DeFi & Gaming)
A new way to interact with DeFi & Gaming DApps has been developed by Biconomy without the inconvenience of private keys, wallets and complicated logins (Behrens 2020). Biconomy uses a relayer infrastructure which collects transactions, buys tokens and spend gas provided by owners/developers of DApps. The blockchain-related activity is completed under the hood – simplifying the user experience for mainstream adoption. As a consequence users who would not normally play blockchains games will easily be able to have the experience.
This is only possible because of Meta-transactions made possible by the power of extremely low fees offered by Matic Network for Transactions.
3.Easy Project Integration
Biconomy SDK (Mexa), enables meta transactions or gasless transactions in your DApp (Decentralized Application) out of the box without any change in your smart contracts and just a few lines of code in your DApp to integrate mexa. By using Mexa, DApp users are able to use the DApp and send transactions free of cost while the developer pays the gas fee on their behalf as a part of user acquisition cost (Biconomy SDK).
No existing code needs to be changed and all that is required is to add a few lines of code to integrate a DApp as the images below show:
Integration of fully operational DApps on Ethereum, EOS, or TRON as well and DApps already migrated to Matic can use Biconomy as a tool to market their project and expand. For example, the chart below shows some of the gaming DApps that could use Biconomy.
Source: Blockchain Innovation Blog
According to Biconomy (Biconomy Dashboard 2020), Biconomy Dashboard allows developers to register their DApps (Decentralized Applications), smart contracts and manage methods/api on which a developer wants to enable meta transactions or gasless transactions. The screenshot step-by-step documentation shows the process and includes a limit section to include the avoidance of misuse of funds, and soon to come DApp Statistic and usage which will include ley information such as data like Daily new users, daily active users, gas usage per duration of time, gas usage per API of your DApp.
5.Additional features -From the Biconomy Website
6. Biconomy Decentralized Matic Network Validator
It is interesting to note that Biconomy is also a selected Matic Network Validator and its node will be one that will take over the currently centralized Matic validators in the coming weeks. All tokens currently staked on the centralized Matic nodes will be transferred to the decentralized nodes currently being set up during the stage 2 Mainnet phase which is centralized - stage 3 within a few weeks will be fully decentralized.
Most important to note is that Meta-Transactions solve the fourth blockchain dilemma, high fees, by providing the options for DApp developers to pay the fees due to the very low cost of Matic Network transaction fees. Biconomy in tun takes out the hassle for all users (crypto savvy and mainstream) by removing the need for wallets and private key security. Furthermore, developers will not need to change any existing code and migration is easily accomplished by the inclusion of a few lines of code. The dashboard additionally makes setting up the DApp easy.
DApps that are fully operational and have thus not been able to take advantage of the low Matic fees will now be able to integrate, in many instances. New DApps building on Matic will also be able to use the mass adoption designed platform to simplify the user experience and expand their markets. Biconomy can be used by Ethereum, TRON and EOS blockchains due to its agnostic structure.
Contact a Member of the Biconomy Team to Integrate
Ahmed Al-Balaghi (Cofounder & CEO)
Contact a Matic Team Member to Integrate Your Project for Layer 2 Scaling, lower fees, full security and decentralization
For those interested in building / integrating with the Ethereum / Matic network you can contact a member of the team at https://matic.network/about/ where individual team members contact information can be found, or at firstname.lastname@example.org
Blockchain Innovation Blog
© Can Stock Photo / tashatuvango